Business Confidence Impacted? Japanese Companies Expected to Cut Summer Bonuses

According to a recent Reuters Corporate Survey, amid the escalating US-China trade war, around 75% of Japanese companies are planning to...

Bonus

According to a recent Reuters Corporate Survey, amid the escalating US-China trade war, around 75% of Japanese companies are planning to hold annual bonuses steady. Companies’ bonuses are seen as a key indicator of business confidence, and are directly connected to the overall economic growth.

In recent months, Japan’s export-oriented economy has experienced a significant slowdown in light of the trade tensions between US and China. China is one of Japan’s most important trading partners and the tariff war has caused weaker exports towards China as well as weaker domestic demand, bringing down profits for Japanese companies.

According to the survey, 48% of Japanese businesses were anticipating summer bonuses to remain the same as the previous year, while 24% anticipated a reduction in bonuses. Only 24% of Japanese companies surveyed expected their summer bonuses to grow this year. A recent survey by Japanese business lobby Keidanren has also revealed recently that large businesses are expected to cut bonuses by around 3.4% as a result of the difficult business conditions.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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